Heavy Crude Processing
SK Handa
Engineers India Limited
International Conference on
‘Refining Challenges & Way Forward’
16-17 April, 2012
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Introduction
• Challenges Facing Refinery
– Conventional Crude Production
– Growing Energy Demand
– How to meet energy demand
– Have we reached peak oil production
• Unconventional Feedstocks
– Heavy Oil & Oil Sands
– Heavy Crude Quality
– Processing Options for Heavy Crude
• Syn Crude Economic Data
• Conclusions
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Challenges Facing Refinery
• Process heavy, high sulphur cheaper feedstocks
• Bottom of the barrel processing to improve margins
• Improve fuels quality to meet new specifications
• Reduce emissions to meet environmental norms
• Flexibility to meet changing market demands
• Processing of unconventional feedstocks
• Reduction in CO2 emissions
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Regional Crude Oil Production
Increasing Middle East
CIS
Africa
Canada
Flat United States
Latin America
Asia
Declining Europe
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Heavy Sour Crude Production
Observations :
Total heavy sour crude production is expected to reach 700 MMTPA (14 million B/D) by Yr. 2020, an increase of over 2.5 MM B/D over year 2010 production.
The largest increases will come from the Middle East & Canada.
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Growing Energy Demand
Most countries rely on few energy producing nations that control
abundant hydrocarbon reserves.
• Current global oil production is about 82 MMbpsd, 75% of it is
conventional crude oil.
• Total estimated reserves of conventional oil of top 17 producers is 1.2
trillion bbls.
• At the current oil production rate, the balance life of the conventional
crude oil reserves is nearly 54 years.
Looking forward to Yr 2030, forecast global oil demand is estimated to
reach 116 MM bpsd.
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How to Meet Growing Energy Demand
Curb demand on consumer side
Increase supply of raw oil. This requires :
Exploitation of unconventional oil reserves
Advanced processing technology
New innovations for renewable fuels
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Have We Reached Peak Oil
Global oil production in recent past was largely focused on maximising
‘Easy Oil’. This focus has already shifted to unconventional oils.
World oil reserves have already started becoming –
Sour
Heavier
More acidic
Harder to produce or recover
Deteriorating crude quality requires –
Increased production cost
Needs enhanced oil recovery methods
Increased processing cost
The available statistical data of the crude oil reserves shows that conventional
oil production is already past its peak.
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Year–vise Oil Production in Non-OPEC & FSU Countries
Path Forward
After the peak conventional oil production this century,
the refineries are required to necessarily & increasingly
incorporate unconventional feedstock processing
technologies around a core of existing conventional oil
refining assets.
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Conventional & Un-conventional Oil Reserves
• Current share of unconventional
sources in the total output is
about 25%. This is expected to
rise to 40% of global oil supply
by the year 2015.
• Unconventional oil reserves are
estimated to be about 6 trillion
barrels .
• Conventional oil reserves are
estimated to be 1.2 trillion
barrels.
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Unconventional Oils - Heavy Oil & Oil Sands Bitumen
Location Crude Type Estimated Reserves
Alberta (Canada) Bituminous 85% of world’s recoverable
bitumen reserves
Orinoco Belt (Venezuela) Extra-Heavy 90% of world’s extra heavy
reserves
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Rajasthan Crude Characteristics Comparison
Property Rajasthan Crude Arab Mix Crude
(50:50 by wt.) Bombay High
Crude
API 27.06 30.77 39.2
Sulphur, wt% 0.34 2.37 0.142
Total Acid Number (TAN), mg KOH/g
0.49 < 0.2 0.107
Pour Point, Deg C (+)48 (-) 15 (+)7.2
CCR, wt% 8.65 6.0 0.968
Ni+V, ppmw 10.7 48 2.1
Wax Content, wt% 25.8 2.8 10.6
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Rajasthan Crude Product Yield Comparison
0
20
40
60
80
100
120
RAJASTHAN ARAB MIX BOMBAY HIGH
1.98 1.63 1.239
12.27 19.41
6.327
19
26.31
17.37
18.51
22.226
44.14
26.15
23.91 30.91
22.06
6.51 VAC RESIDUE
VGO
DIESEL
KEROSENE
NAPHTHA
LPG
C1-C2
Yie
ld (
wt%
)
Yield (Wt%)
Rajasthan Crude
AM BH
RCO 73.3 48.8 30.4
VGO 43.8 26.2 23.9
VR 29.5 22.6 6.5
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Heavy Oil & Oil Sands Bitumen Properties
Property Heavy Oil Bitumen
Density, 0API 20 ~ 22 7 ~ 19
Density, Kg/M3 920 ~ 950 > 1000
Sulphur, wt% 3 ~ 4.5 > 4
Viscosity, cP > 30,000 > 100,000 @ 250C
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New innovative technologies are needed to upgrade the extra-heavy oil /
bitumen feedstocks.
Heavy Crude Quality
Property Comment Impact
API Typically, oil gravity approaches water, requiring
a diluents to separate water from hydrocarbon
Water / Oil
separation
Sulphur High sulphur levels requiring hydrotreatment Corrosion
Nitrogen High nitrogen levels requiring H2 for removal,
producing NH3 Corrosion
Metals Ni/V/Fe High catalyst replacement Catalyst
deactivation
Metals
Na/Ca/As
Alkaline metals, special guard bed / catalysts
for removal
Corrosion / catalyst
deactivation
Asphaltenes Potential for fouling, may cause frequent
maintenance shutdown Fouling
Naphthenic
acids High levels will cause corrosion Corrosion / fouling
Chlorides Typically associated with alkaline metal Corrosion
Viscosity Too high to pump; requires diluents High transportation
/ pumping cost
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Technology Options for Heavy & Bituminous Crude Processing
• Blending with light crude oil
Light crude required for blending is in short supply
Limited application in processing large volumes of heavy oil
Cannot be applied to bituminous crudes without prior upgrading
• Upgrading for integrating as refinery feed
Upgraders remove contaminants, produce high-value, light sweet synthetic
crude oil (SCO)
Upgrader can be On-site or Off-site based on location relative to production
facility
Synergy of upgrader with upstream production facility or downstream
refining facility is specific to each case
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Processing Steps for Upgrading Heavy Oil / Bitumens
Mining or
In-Situ
Extra-Heavy
Oil / Bitumen
Blending
Upgrader
Diluent Recycle
Light sweet SCO
Heavy crude oil
Blend Assay
On-site or Off-site
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Primary Upgrading Process Selection
Delayed Coking
• Offers low liquid product yield
due to 25~35% coke make & ~
10% gas make.
• Products have high aromatic
content, not suitable for FCC
feedstock.
• Not favorable from
environmental considerations.
• Coke disposal by gasification.
Delayed coking is not an ideal
option for upgrading heavy /
bituminous feedstocks though it
requires lower capital investment.
SDA & Hydroconversion
• Super critical solvent extraction
gets high DAO yield (70~80%).
• DAO is of high quality achieved
by selectively removing solid
asphaltenes.
• Without SDA, hydroconversion
may suffer from shorter cycle
length caused by catalyst fouling.
• Pitch disposal by gasification.
SDA combined with
Hydroconversion can produce
higher liquid volume of better
quality Syncrude but the capital
cost is higher.
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Onsite Upgrading with SDA & Hydroconversion
Heavy Feed Central
Processing Facility
Diluent
Recovery
Vacuum
Distillation
Air
Separation
Syngas Treating
& Conditioning
Asphalt
Gasification
Solvent
Deasphalting
Sulfur
Recovery Hydroconversion
Dilu
en
t R
ec
yc
le
LPG
Hvy Oil from Well
Distillates
Steam for SAGD
Syngas for SAGD Fuel
VTR
DAO
Light sweet SCO
Sour gas Fuel Gas
Hydrogen
Syngas Asphalt
Sour Gas
Sulphur
Oxygen
Offsite Upgrading with SDA & Hydroconversion
Diluent
Recovery
Vacuum
Distillation
Air
Separation
Syngas Treating
& Conditioning
Asphalt
Gasification
Solvent
Deasphalting
Sulfur
Recovery Hydroconversion
Diluent Recycle
LPG
Distillates
VTR
DAO
Light sweet SCO
Sour gas
Fuel Gas
Hydrogen
Syngas Asphalt
Sour Gas
Sulphur
Oxygen
Gas
Turbine
Steam
/
Power
Diluted Hvy Oil
Syn Crude Oil – Economic Data
The estimated development cost of a grassroots project in Alberta
sands with production capacity of 100,000 bpsd of bitumen &
Syncrude oil quality of 360 API is :
21 $/bbl over a 20 year project life
Based on existing operating cost of Orinoco belt, the unit
development cost for Syncrude oil quality of 320 API is :
10 $/bbl over a 20 year project life
• Canadian Syncrude is a traded commodity.
• Syn crude is priced about 2~3$/bbl lower than low sulphur
benchmark crudes.
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Product Result of Hydroconversion Processing of Heavy Oil
Property Bitumen Feed Syncrude Product
API gravity 17.5 35.0
Sp. Gravity 0.9497 0.8498
S, wt% 1.22 < 0.1
N, wt% 0.3 0.13
Metals, wppm 77 < 1.5
CCR, wt% 7.4 < 1
535+ 0C, wt% 41.7 5.0
Typical Syn Crude Product Yields
Naphtha Kero Diesel VGO VR
Yield, wt% 20.2 30.9 16.5 27.5 5.0
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Syn Crude Processing – Impact on Refinery Operation
Syncrude
Type
Processing Implications
Sweet
hydrotreated
syncrude
Higher percentage of VGO in syncrude require more secondary processing
capacity
FCC conversion & gasoline yields are expected to be lower
‘Difficult to remove’ sulphur & nitrogen species makes ULSD production
difficult.
Kero smoke point not met due to high aromatics.
Production of LOBS by conventional route not possible due to aromatic nature
of synthetic VGO
Syncrudes do not have resid, hence no increase in resid conversion capacity /
under utilised resid processing units.
Sour
syncrude
All the Benefits & limitations of sweet hydrotreated syncrude apply in this
case.
Severe hydrotreating required to make FCC feed of required quality or to
produce ULSD
Additional sulphur plant capacity required
Metallurgy upgrades may be required to handle these crudes
Potential Gasification Feeds & Products
Chemicals Production
Gasification
Plant
Natural Gas
Refinery Gas
Vacuum Residue
Pitch
Coal
Pet Coke
Bio Mass Fischer Tropsch Reaction
Combined Cycle
CO2, N2, S
Steam
Electric Power
H2
CO
Fertiliser
Chemicals
Methanol
Acetic Acid
Naphtha
Jet
Diesel
Wax
Slag for Construction Material & Metal Recovery
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Conclusions
• Conventional crude oils are fast depleting, have limited residual life.
• Proven reserves of unconventional oil are going to replace conventional oils to maintain the energy demand of the world.
• Commercial exploitation of Unconventional oils is expected to help in stabilising crude oil prices besides providing diversity to the crude supply sources.
• Upgradation of existing refineries is necessary to handle the feedstocks of the future.
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Thank you
Engineers India Limited- Delivering excellence through people
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